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Monopoly 3741
Table 15-4
A monopolist faces the following demand curve:
Price
Quantity
$30
0
$25
2.5
$20
5
$15
7.5
$10
10
$5
12.5
$0
15
110.
Refer to Table 15-4. If the monopolist produces 10 units, what is its average revenue?
a. $100
b. $15
c. $10
d. $1
111.
Refer to Table 15-4. If the monopolist produces 5 units, what is its average revenue?
a. $100
b.
$20
c.
$5
d.
$4
112.
Refer to Table 15-4. If the monopolist produces 10 units, what is its marginal revenue?
a. $12.50
b.
$5
c.
-$5
d. -$12.50
113.
Refer to Table 15-4. If the monopolist produces 5 units, what is its marginal revenue?
a. $100
b. $37.5
d.
$15
d. $2.50
114.
Refer to Table 15-4. The monopolist will not produce
a.
5 units or fewer under any circumstances.
b.
7.5 units or fewer under any circumstances.
c.
7.5 units or more under any circumstances.
d.
10 units or more under any circumstances.
Monopoly 3743
115.
Refer to Table 15-4. In order to maximize total revenues, the monopolist should produce
a.
5 units.
b.
7.5 units.
c.
10 units.
d.
12.5 units.
116.
Refer to Table 15-4. In order to maximize profits, the monopolist should produce
a.
7.5 units.
b.
10 units.
c.
where marginal revenue equals marginal cost.
d.
Both a and c are correct.
3744 Monopoly
Table 15-5
A monopolist faces the following demand curve:
Price
Quantity
$51
1
$47
2
$42
3
$36
4
$29
5
$21
6
$12
7
117.
Refer to Table 15-5. The monopolist has total fixed costs of $60 and has a constant marginal
cost of $15. What is
the profit-maximizing level of production?
a.
2 units
b.
3 units
c.
4 units
d.
5 units
118.
Refer to Table 15-5. The monopolist has total fixed costs of $60 and has a constant marginal
cost of $15. What is
the profit-maximizing price?
a.
$4
b.
$39
c.
$36
d.
$42
Monopoly 3745
Table 15-6
A monopolist faces the following demand curve:
Quantity
Price
1
$15
2
$12
3
$9
4
$6
5
$3
119.
Refer to Table 15-6. What is the marginal revenue from the sale of the 2nd unit?
a. $3
b.$3
c.$9
d.$24
120.
Refer to Table 15-6. What is the marginal revenue from the sale of the 3rd unit?
a. -$3
b.
$3
c.
$9
d.
$24
121.
Refer to Table 15-6. What is the marginal revenue from the sale of the 4th unit?
a. -$3
b.
$3
c.
$9
d.
$24
122.
Refer to Table 15-6. If the monopolist has a constant marginal cost for her product equal to $7,
what is her profit-
maximizing price?
a.
$6
b.
$9
c.
$12
d.
$15
123.
Refer to Table 15-6. Suppose the monopolist has total fixed costs equal to $5 and a variable
cost equal to $4 per
unit for all units produced. What is the profit-maximizing price?
a.
$6
b.
$9
c.
$12
d.
$15
124.
Refer to Table 15-6. Suppose the monopolist has total fixed costs equal to $5 and a variable
cost equal to $4 per
unit for all units produced. What is the total profit if she operates at her
profit-maximizing price?
a.
$1
b.
$7
c.
$9
d.
$11
125.
Refer to Table 15-6. Suppose the monopolist has total fixed costs equal to $5 and a variable
cost equal to $4 per
unit for all units produced. What would the total profit be if she charged $6
per unit for her product?
a.
$1
b.
$3
c.
$8
d.
$15
Table 15-7
Sally owns the only shoe store in town. She has the following cost and revenue information.
COSTS
REVENUES
Quantity
Produced
(pairs)
Total Cost
($)
Marginal
Cost
Quantity
Demanded
Price
($/unit)
Total
Revenue
Marginal
Revenue
0
100
--
0
170
--
1
140
1
160
2
184
2
150
3
230
3
140
4
280
4
130
5
335
5
120
6
395
6
110
7
475
7
100
8
565
8
90
126.
Refer to Table 15-7. What is the marginal cost of the 6th pair of shoes?
a. $44
b. $46
c. $55
d. $60
127.
Refer to Table 15-7. What is the marginal cost of the 8th pair of shoes?
a. $50
b. $60
c. $90
d. $110
128.
Refer to Table 15-7. What is the total revenue from selling 6 pairs of shoes?
a. $100
b. $600
c. $625
d. $660
129.
Refer to Table 15-7. What is the total revenue from selling 8 pairs of shoes?
a. $90
b. $695
c. $720
d. $800
130.
Refer to Table 15-7. What is the marginal revenue from selling the 2nd pair of shoes?
a. $140
b. $150
c. $160
d. $170
131.
Refer to Table 15-7. What is the marginal revenue from selling the 8th pair of shoes?
a. $10
b. $20
c. $40
d. $90
132.
Refer to Table 15-7. What is the average revenue when Sally sells 7 pairs of shoes?
a. $40
b. $90
c. $100
d. $700
133.
Refer to Table 15-7. Sally will maximize her profits by selling
a.
3 pairs of shoes.
b.
4 pairs of shoes.
c.
6 pairs of shoes.
d.
7 pairs of shoes.
134.
Refer to Table 15-7. What is total profit at the profit-maximizing quantity?
a. $100
b. $245
c. $265
d. $395
135.
Refer to Table 15-7. What are Sally's fixed costs?
a.
$0
b.
$100
c.
$600
d.
$745
136.
Refer to Table 15-7. What is the total variable cost of production when Sally produces six
pairs of shoes?
a. $100
b. $295
c. $600
d. $620
Monopoly 3753
Table 15-8
The following table provides information on the price, quantity, and average total cost for a
monopoly.
Price
Quantity
Average Total
Cost
$24
0
---
$18
5
$14.00
$12
10
$11.00
$6
15
$10.67
$0
20
$11.00
137.
Refer to Table 15-8. How much extra revenue does the monopolist earn when he lowers the
price from $18 to $12?
a. $10
b. $12
c. $30
d. $41
138.
Refer to Table 15-8. What is the additional cost to the firm when the monopolist lowers the
price from $18 to $12?
a. The firm saves $15.
b. $15
c. $30
d. $40
139.
Refer to Table 15-8. At what price will the monopolist maximize his profit?
a.
$6
b.
$12
c.
$18
d.
$24
140.
Refer to Table 15-8. What is the maximum profit that the monopolist can earn?
a. $10
b. $20
c. $30
d. $40
Monopoly 3755
Table 15-9
Consider the following demand and cost information for a monopoly.
Quantity
Price
Total Cost
0
$32
$6
1
$28
$20
2
$24
$34
3
$20
$48
4
$16
$62
5
$12
$76
141.
Refer to Table 15-9. What is the marginal revenue of the 3rd unit?
a. $4
b. $12
c. $20
d. $28
142.
Refer to Table 15-9. What is the marginal cost of the 4th unit?
a.
$4
b.
$14
c.
$31
d.
$62
143.
Refer to Table 15-9. What price should the monopoly charge to maximize profit?
a. $16
b. $20
c. $24
d. $28
144.
Refer to Table 15-9. At the profit-maximizing price, how much profit will the monopoly earn?
a. $8
b. $10
c. $12
d. $14
145.
Refer to Table 15-9. What is the monopolist’s average total cost of production at the
profit-maximizing price?
a. $12
b. $14
c. $16
d. $17
Monopoly 3757
Table 15-10
The monopolist faces the following demand curve:
Price
Quantity
$10
5
$9
10
$8
16
$7
23
$6
31
$5
45
$4
52
$3
60
146.
Refer to Table 15-10. If the monopolist has total fixed costs of $40 and a constant marginal
cost of $5, what is
the profit-maximizing level of output?
a.
7 units
b.
16 units
c.
23 units
d.
31 units
147.
Refer to Table 15-10. If the monopolist has total fixed costs of $40 and a constant marginal
cost of $5, how much
profit can the firm earn at the profit-maximizing level of output?
a. $128
b. $120
c. $80
d. $8
3758 Monopoly
Table 15-11
The following table shows quantity, price, and marginal cost information for a monopoly:
Output
Price
MC
0
$10
--
1
$9
$3
2
$8
$4
3
$7
$5
4
$6
$6
5
$5
$7
6
$4
$8
148.
Refer to Table 15-11. What price should the firm charge to maximize its profit?
a.
$4
b.
$5
c.
$6
d.
$7
149.
Refer to Table 15-11. What level of output should the firm produce to maximize its profit?
a.
2 units
b.
3 units
c.
4 units
d.
5 units
150.
Refer to Table 15-11. What would be the firm’s marginal revenue at the profit-maximizing
level of output?
a.
$7
b.
$6
c.
$5
d.
$1
Table 15-12
The following table provides information on the price, quantity, and average total cost for a
monopoly.
Price
Output
ATC
$5
0
--
$4
4
$1.00
$3
8
$0.75
$2
12
$0.75
$1
16
$0.81
$0
20
$0.90
151.
Refer to Table 15-12. At what price will the firm maximize its profit?
a.
$1
b.
$2
c.
$3
d.
$4
152.
Refer to Table 15-12. In order to maximize profits, the firm should produce
a.
4 units of output.
b.
8 units of output.
c.
12 units of output.
d.
16 units of output.
153.
Refer to Table 15-12. If the firm produces the profit-maximizing level of output, it will earn
profits of
a. $24.
b.
$18.
c.
$15.
d.
$12.
